Replication data for: The Welfare Effects of Nudges: A Case Study of Energy Use Social Comparisons

Principal Investigator(s): View help for Principal Investigator(s) Hunt Allcott; Judd B. Kessler

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Code			10/12/2019 02:56:PM
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Project Description

Summary: "Nudge"-style interventions are often deemed successful if they generate large behavior change at low cost, but they are rarely subjected to full social welfare evaluations. We combine a field experiment with a simple theoretical framework to evaluate the welfare effects of one especially policy-relevant intervention, home energy social comparison reports. In our sample, the reports increase social welfare, although traditional evaluation approaches overstate gains because they ignore significant costs incurred by nudge recipients. Overall, home energy report welfare gains might be overstated by $620 million. We develop a prediction algorithm for optimal targeting; this approach would double the welfare gains.

Scope of Project

JEL Classification:
      C93 Field Experiments
      D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
      L95 Gas Utilities; Pipelines; Water Utilities
      Q41 Energy: Demand and Supply; Prices
      Q48 Energy: Government Policy

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Published Versions

V1 [2019-10-12]

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DDI 2.5

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